LANSING, Mich.— A bill has been introduced in the Michigan legislature that would allow financial institution branches to deliver some of the services the state currently provides related to vehicle registrations.
State Rep. Matt Maddock (R-Milford Township) testified in a state House Transportation Committee that the change would shorten lines at secretary of state branches and save the state money, as approximately 60% of people who go to branch offices go for a license plate sticker tab.
Maddock’s bill would allow financial institutions approved by the secretary of state's office to provide some of its services. Maddock testified that banks, credit unions or other regulated lending institutions would be required to give service fees equal to that at the secretary of state's to the state treasurer, but financial institutions would be allowed to charge more in order to get a profit, the Associated Press reported.
Department of State spokesperson Matt Levin told the AP the department opposes allowing financial institutions to provide secretary of state services. He said overseeing them would put unnecessary strain on the department.
The AP further reported that with COVID-19 moving services for many branches online, Rep. Tenisha Yancey (D-Harper Woods) expressed concern about who would have to use financial institutions for services and the possibility of a predatory charge.
“If the urban area SOS's are the ones that closed down, then the convenience fee for certain areas could be higher in certain areas than other areas, like redlining," she said.